12 °c
London
Sunday, August 14, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Ethiopia’s Telecom auction plan falters before bidder meeting

Staff by Staff
November 23, 2020
in Africa, Ethiopia, Infrastructure, Privatisation, Telecom, Tender
Reading Time: 3 mins read
833 8
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Ethiopia’s protracted privatization process faces sticking issues as the government and prospective investors prepare to meet this week, with an escalating armed conflict starting to add to concerns.

MTN Group Ltd., Africa’s largest carrier by subscribers, sees the investment case weakening due to uncertainty over whether international tower companies would participate and a mobile-money license be included, Chief Executive Officer Ralph Mupita said this week, adding that the group remains interested.

Crosstown Johannesburg rival Vodacom Group Ltd. said it’s monitoring the conflict between the government and the Tigray region before making its final decision, having earlier said it would bid in a consortium with Vodafone Group Plc and Kenya’s Safaricom Plc.

The remarks indicate a more cautious approach from companies that have long expressed an interest in expanding in Ethiopia, even before Prime Minister Abiy Ahmed proposed ending state-owned Ethio Telecom’s monopoly in mid-2018. Africa’s second-most populous country with more than 100 million people is seen as one of the final frontiers for international operators, and French group Orange SA is another to have thrown its hat into the ring.

‘Onerous Requirements’

“The potential remains, the question is really to what extent operators will be willing to acquiesce to the more onerous requirements of the state,” said Chiti Mbizule, a telecom analyst at Fitch Solutions. “Political instability in the country also continues to pose a major risk not only to the pace of the reforms but also the attractiveness of the market.”

Also read: Ethiopia to auction telecoms licences in December

 

The sale of two new licenses and a minority stake in Ethio Telecom had been set for early this year.

Ethiopia’s government says the plan is on track. Public consultation with interested bidders is going ahead this week, according to Eyob Tekalign, the minister responsible for privatization. The state wants to answer all questions investors might have before issuing a document outlining what it expects from companies in terms of cash and technical capacity, he said. The question of mobile money has been raised by the operators as it’s now a key part of most African telecom business models.

“There is nothing of concern at all,” Eyob said in response to questions about whether the Tigray war is having an impact.

Bureaucratic Process
The sale of two new licenses and a minority stake in Ethio Telecom had been set for early this year, but a combination of the Covid-19 pandemic, postponed national elections and a painstaking bureaucratic process have pushed the process back to February 2021. Terms of the auction and the regulatory framework haven’t yet been formally communicated to bidders. Safaricom, which would have a 51% share of the Vodacom consortium, said earlier this month it would submit an offer only after that happened.

Orange declined to comment.

Complicating the process further is the outbreak of war in the north of the country, which has seen hundreds of people die and thousands displaced since the start of fighting earlier this month. Abiy has rejected calls by foreign governments to negotiate a peace deal and the United Nations warned the situation could be spiraling out of control. The internet has been shut off in Tigray, as it has been nationally on repeated occasions during times of strife.

“It would concern operators that the incidence of state-compelled internet shutdowns in times of political and social dissent have continued even under the new regime,” Mbizule said.

The telecom privatization process was intended to kickstart a broader sale of state assets to help raise foreign exchange and boost the economy, with rail and industrial parks among the sectors slated for disposal. Of those, the auction of factories and land owned by Ethiopian Sugar Corp. was the furthest advanced at the start of the year, and Eyob said that also remains on track.

Source: Bloomberg

Related

Tags: Ethio telecomEthiopiaEthiopia’s Telecom auction plan falters before bidder meetingMTN GroupOrange SAprivatisationtelecomtelecom auctionVodacomэфиопияأثيوبياエチオピア埃塞俄比亚
ScanSendShare336Tweet210Share59Pin76Send
Staff

Staff

Related Posts

Travel

Affordable hotels in Maasai Mara for international budget travelers

by See Africa Today
August 14, 2022
Travel

10 Festivals worth catching a flight for

by See Africa Today
August 14, 2022
Culture

Meet 3 Richest African Immigrants in the US Millionaires Club

by See Africa Today
August 13, 2022
Culture

7 Africa’s Longest Serving Presidents

by See Africa Today
August 13, 2022
Economy

Mozambique’s 22% tax cuts among 20 measures for economic acceleration

by The Exchange
August 13, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Travel

Affordable hotels in Maasai Mara for international budget travelers

by See Africa Today
August 14, 2022
0

The great migration is back with us once again and affordable hotels in Maasai Mara give you a reason to...

Read more

10 Festivals worth catching a flight for

August 14, 2022

Meet 3 Richest African Immigrants in the US Millionaires Club

August 13, 2022

7 Africa’s Longest Serving Presidents

August 13, 2022

Mozambique’s 22% tax cuts among 20 measures for economic acceleration

August 13, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,388 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?